Dollar continued to rally for the second straight day on Friday 04th Feb, against every major pair after unexpected sharp decline in unemployment rate in US to 9.0 percent for January 2011 against median expectation of 9.5 percent. Nonfarm payroll showed a minimal increase of 36,000 well against the consensus of 140,000. EURUSD continued to decline for third consecutive day and made a low of 1.3543 before settling at 1.3585. Dow Jones continued its momentum and settled near days high of 12091.77. $93 again proved to be major hurdle for crude, prices settled at $89.11 on Friday, $2.55 off from day’s high of $91.66. USDCHF and USDJPY posed decent recovery and settled with a positive note.
EURUSD need to hold support of 1.3488 for avoiding further price loss. Stay long in USDCHF and USDJPY for 0.9680 and 82.92 respectively in near-term.
Instrument Trend Trading Strategy
EURUSD Down Sell in the ranges of 1.3684-1.3688 S/L: Above 1.3720 TGT:1.3530
Buy in the ranges of 1.3528-1.3530 S/L: Below 1.3488 TGT:1.3684
GBPUSD Sideways Sell in the ranges of 1.6240 S/L: above 1.6320 TGT: 1.5990
USDCHF Up Buy at 0.9535-0.9530 S/L: Below 0.9450 TGT:0.9680
USDJPY Sideways Buy in the ranges of 81.75-81.78 S/L: Below 80.93 TGT1: 82.40 TGT2:82.92
EURJPY Sideways Range bound between 110.80-113.00
AUDUSD Up Buy in the ranges of 1.0125-1.0120 S/L: Below 1.0055 TGT:1.0208
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